The Czech Republic will enforce stricter rules on cryptocurrency platforms than was initially required by the European Union (EU)’s Fifth Anti-Money Laundering Directive (AMLD5).
The latest development initially reported by local news agency, Hospodářské Noviny, reveals that the Czech Republic considers the crypto industry riskier than their counterparts.
Specifically, the country will under the new rules impose a fine of up to half a million koruna or approximately $20,000 on cryptocurrency platforms that fail to obtain an operating license from the National Trade Licensing Office.
The proposed fine is not part of the EU's AMLD5 which was crafted to curtail money laundering and counter-terrorism financing via financial institutions. Also, those rules did not apply to cryptocurrency platforms until the current transposition which the Czech Republic is set to carry out soon.
Both cryptocurrency exchanges and wallet providers will now have to abide by the new rules or risk facing punishment from authorities.
Moving further, although the report did not provide a timeline of when the Czech government will implement the proposed stricter rules for crypto firms, all EU member nations have until Jan. 20, 2020 to transpose AMLD5 with the window period beginning back in July 2018.
It is also still unclear at this point, which other rules the Czech Republic will introduce for crypto firms beyond the EU's fundamental requirements.
In December 2018, Stmarket.co reported that the Netherlands also began the process to transpose AMLD5 to apply to local crypto exchanges and wallets. More recently, the Financial Action Task Force (FATF) introduced even more stringent rules for crypto firms, requiring that these platforms share user data in the same manner as other financial institutions.